Drivers of consumers’ food choices

Mara ThieneUniversity of Padua - Italy

THE 2018 EU AGRICULTURAL OUTLOOK CONFERENCE

DECEMBER 6-7TH 2018 BRUSSEL

Why should we investigate food consumers’ choices?

They play a crucial role in shaping:

1. farm systems & technologies2. health 3. environment4. local and global economies.

Introduction

(Lusk and McCluskey, 2018)

Many (interacting) factors:

1. Sustainable production methods2. Geographical origin3. Food Safety4. Ethical concerns5. Psychological traits6. Goals and motivations7. …

How can we measure the effect of different determinants on choices?

Choice Models and Willingness to pay (premium price)

Determinants of choice

1) Organic farming

organic apples in Denmark organic olive production in Spain organic beef in Australia

Findings: consumers are willing to pay a premium for organic food, but … not everywhere (US)!

2) Comparing alternative farming methods (organic, IPM, biodynamic)

Apples & carrots in Italy.

Findings: is there a preferred one?

1. Sustainable Production Methods

(Denver and Jensen, 2014; Yangui et al., 2016; Ardeshiri and Rose, 2018)(Lusk et al., 2014; Moser and Raffaelli, 2012; Thiene et al. 2010)

1. Sustainable Production Methods

(Ardeshiri and Rose, 2018)

WTP ($/kg) premium for beef cuts in Australia

Production Met. Minced Diced Roast Rump Porterhose Scotch Eye

Grass fed 0.39 1.15 0.82 0.81 0.87 1.52 1.42

Grain fed 0.45 1.36 0.96 0.96 1.03 1.79 1.67

Antibiotics free 0.30 0.89 0.63 0.62 0.67 1.17 1.09

Organic 0.21 0.64 0.45 0.45 0.48 0.84 0.79

Consumers are increasingly interested in the place of production of food: local (certified) food (CGDO, Prosecco wine).

People prefer local food because it is perceived as: • fresher, tastier, safer• beneficial for local farmers and communities (collective brands: Val di Gresta

Alpine Valley)• beneficial for the environment.

2. Geographical origin

(Conner et al., 2010; Grebitus et al., 2013)(Keeling et al., 2006; Scarpa et al., 2010)

Local and GM food

WTP for sugar origin and use of GM in farming (US consumers)

-2,5 -2 -1,5 -1 -0,5 0 0,5 1 1,5

GM

Not GM

Canada

United States

Mexico

Philippines

WTP ($/sugar bag)

(Lewis, Grebitus, Nayga, 2016)

Novel techniques developed to improve foods in the supply chain.

Advantages:• more effective production techniques (increased yield)• produce new tastes, textures, and flavors• ensure improved safety during shelf life of foods.

Are consumers WTP for new technologies?

3. Food Safety

(FSA, 2012)

Consumers are more likely to accept new technologies if:• food packaging rather food processing• no health risks involved• environmental benefits associated.

Consumers’ preferences for nanotechnology in food packaging - Raw chicken

Nano sensors in smart packages allow to detect contamination/pathogen.

Conventional vs welfare raised chicken (0.30-0.60£)

Consumers attitudes towards new technologies

(Ison and Kontoleon, 2014; Erdem, 2015)

(Schnettler et al., 2014; Roosen et al., 2011));

Increasing calls worldwide for poor working conditions in the agri-food sector.

Food products certified with fair labour labels have emerged in the market.

Are consumers willing to pay a premium for products with such labels?

Greek consumers are willing to pay an average premium of 0.53€/500g for strawberries with fair labour certification.

4. Ethical concerns

(Drichoutis et al., 2017)

Researchers have noticed that emotions, mood, personality traits affect food choices and can interact with each other.

People eat in order to distract themselves/compensate/cope with negative effects such as stress, anxiety, boredom and depression.

Social norms/pressure can also influence consumers’ preferences for foods features, such us local origin and organic

4. Psychological Aspects

(Grebitus et al., 2013; Kim et al., 2018; Wallis et al., 2009)

Organic products and social pressure

(Kim, Lusk, Brosen, 2018)

EYE treatment simulates being watched during food purchase, to induce social pressure.

We are familiar with the challenge of balancing multiple goals: everyday we strive to enjoy tasty food, improve our health, develop our careers, etc.

Our achievement of different goals varies, depending on external circumstances and cognitive strategies that we employ, (e.g. an urgent deadline at work force us to prioritize career-related goals).

5. Goals & Motivations

(Dallaert et al., 2017)

What would you like to eat, Madam?

(Swait, 2017)

(Swait, 2017)

Indulge myselfEat healthily

Comfort myself w/

familiar foods

Food choices and healthWhy is it important to investigate food consumers’ choices?

They play a crucial role in shaping:1. farming system2. health3. environment4. local and global economies.

Does knowing food determinants help in terms of health policy?

Consumers’ choices play a crucial role in health issues (…being overweight!)

Front of Pack Labels (FoPLs)

Nutritional information via food labels: effective tool to fight increasing unhealthy diet.

Dietary information: sugar, fat, saturated fat & salt contents (Guideline Daily Amounts - GDA).

The UK Food and Health authorities promote nutritional information in pre-packed food FoPLs.

How effective are FoPL formats to consumers?

(Thiene et al., 2018)

Text only (TXT)

Multiple Traffic Light (MTL)

% Guideline Daily Amount (GDA)

Hybrid (HYB)

FoPL Formats

(Thiene et al., 2018

Marginal WTPs Estimates (£/week)

-100,0

-80,0

-60,0

-40,0

-20,0

0,0

20,0

40,0

60,0

£/w

eek

Cl1 Healthy all rounders (38%)Cl2 High fat lovers (32%)Cl3 Selectively focussed (20%)Cl4 Moderately interested (11%)

(Significant values only)

Covariates:

Old age+ Freq. reading- Ideal body weight+

FoPl:

GDA- MTL-

(Thiene et al., 2018)

Choice Models are tools to investigate:

i) The probability of choosing a food within a set of food optionsii) Determinants of food choiceiii) Tradeoffs between food determinants (e.g health vs taste)iv) The marginal WTP for an increase/decrease of a given food attribute

… all crucial information for the market…and not only

Conclusions

Thank you!